february 2019...pan orient disclaims any obligation or undertaking to disseminate any updates or...

© 2018 Pan Orient Energy Corp.

February 2019


Cautionary Statement

This presentation contains forward looking statements which involve subjective judgment and analysis and

are subject to significant uncertainties, risks and contingencies including those risk factors associated with

the oil and gas industry, many of which are outside the control of and may be unknown to Pan Orient. No

representation, warranty or assurance, express or implied, is given or made in relation to any forward looking

statement. In particular, no representation, warranty or assumption, express or implied, is given in relation to

any underlying assumption or that any forward looking statement will be achieved. Actual and future events

may vary materially from the forward looking statements and the assumptions on which the forward looking

statements were based.

Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking

statements, and should rely on their own independent enquiries, investigations and advice regarding

information contained in this presentation. Any reliance by a reader on the information contained in this

presentation is wholly at the readers own risk.

Readers are cautioned that well test results are not necessarily indicative of long-term performance or of

ultimate recovery.

Pan Orient and its related bodies corporate and affiliates and their respective directors, partners, employees,

agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages suffered by

a person or persons as a result of relying on any statement in, or omission from, this presentation. Subject to

any continuing obligations under applicable law or any relevant listing rules of the TSX Venture Exchange,

Pan Orient disclaims any obligation or undertaking to disseminate any updates or revisions to any forward

looking statements in this presentation to reflect any change in expectations in relation to any forward looking

statements or any such change in events, conditions or circumstances on which any such statements were

based.


Corporate Summary

Financial

Basic Common Shares Outstanding (TSXV:POE) Dec31-2018 54.9 million

Insider Holdings 7.3%

Total Long-term Debt nil

Market Capitalization @$1.40/Share $76.9 million

Total Corporate Funds Flow from operations 2018 Q3 (9 months) $2.5 million

Working Capital & Non-current Deposits – Pan Orient Sept30-2018 $33.0 million

Working Capital & Non-current Deposits – Thailand Joint Venture Sept30-2018 $ 6.6 million

Working Capital & Non-current Deposits (Pan Orient & Thailand JV) $39.6 million ($0.72/POE Share)

Reserves1 & Prospective Resources2 & Contingent Resources3

Thailand Proved + Probable Reserves (“2P”)1 (50% of POS) 1.366 million

NPV10 @ Tax $ 39.5 million

per Pan Orient share $0.72

East Jabung PSC Indonesia - Unrisked Mean Prospective Resources 2 122.9 million barrels recoverable

Sawn Lake Alberta - Risked Mean Contingent Bitumen Resources 3 (71.8% of Andora) 141 million bbls recoverable

Notes:

1. Thailand oil reserves at December 31, 2018 evaluated by Sproule International Limited for Pan Orient Energy (Siam) Ltd. (POS),

value shown here reflects POE’s 50% ownership in POS.

2. Indonesia Prospective Resources for the Anggun Prospect at the East Jabung Production Sharing Contract (PSC) as at June 15,

2015 evaluated by Gaffney, Cline & Associates (Consultants) Pte. Ltd. in barrels of oil equivalent.

3. Sawn Lake Contingent Bitumen Resources at June 30, 2016 evaluated by Sproule Unconventional Limited, volume shown here

reflects POE’s 71.8% ownership in Andora Energy Corporation (Andora)


Asian Assets

Thailand

• History of value creation onshore

– Concessions L44 & L33 purchased October 2007

and sold June 2012 to ECO Orient for net proceeds

of $174 million, before tax

• Concession L53:

– Five oil discoveries at L53A, L53-D, L53-G & L53B &

recently L53DD in November 2018

– A 50% working interest sold in 2015 for net proceeds

of $52 million

– Dec31- 2018 proved plus probable oil reserves

increased 150 per cent and proven reserves

increased 65%

– January 2019 gross (100%) oil sales of 40,773

barrels (658 BOPD net to POE’s 50%)

– A two well appraisal drilling program including well

L53-DD4 targeting the DD field 3P reserves

envelope and L53-DD3 targeting the 2P reserves

area is currently underway

– A three to four well exploration drilling program

planned for late Q3/Q4 2019

Indonesia

• High impact Anggun-1X exploration well planned for late

Q2 2019 at East Jabung PSC

Indonesia: East Jabung

POE 49% Non-Operator

Exploration

Exploration & Production

Thailand: L53

POE 50% Operator


Pan Orient Valuation

Capital Structure

Basic Common Shares Outstanding (TSXV:POE) Dec31-2018 54.9 million

Total Long-term Debt nil

Market Capitalization (Current Share Price) $76.9 million ($1.40/POE Share)

Estimated Market Valuation of Assets

Working Capital & Non-current Deposits – Pan Orient Sept30-2018 $33.0 million

Working Capital & Non-current Deposits – Thailand Joint Venture Sept30-2018 $ 6.6 million

(1) Working Capital & Non-current Deposits (Pan Orient & Thailand JV) $39.6 million ($0.72/POE Share)

(2) Thailand Proved & Probable Reserves NPV(10) Dec31-2018 Net to POE $39.5 million ($0.72/POE Share)

Working Capital, Non-Current deposits & Thailand Reserves (1+2) $78.1 million ($1.44/POE Share)

At a $1.40 Share Price, no implied value attributed to:

a) Thailand Exploration Upside,

b) East Jabung Prospective Resources, and

c) Sawn Lake Contingent Resources


Capital-Drilling Schedule 2019

Notes:

1. ANGGUN-1X drilling is anticipated to start in late Q2 2019 & take approximately 31 days to completion. Based on the

well cost estimate provided by the operator, it is estimated POE’s net cost on a dry hole basis will be US$7.5 million

plus an additional US$1.5 million for testing of two zones in the success case.

2. Thailand 2 well appraisal program drilling + completion cost

3. Thailand 4 well exploration program dry hole cost

DD 2 Well Appraisal

L53 Thailand

Capital Q4/2018 Q2/2019 Q4/2019 Q1/2019 Well/Area

Anggun-1X Testing

East Jabung Indonesia

4 Exploration Well Drilling Program

L53 Thailand

Q3/2019

Anggun-1X Exploration Well

East Jabung Indonesia

Range of timing of commencement of drilling – Firm Activity

Range of timing of commencement of drilling – Contingent Activity

$7.5MMusd1

$1.9MMusd2

$2.8MMusd3

Firm 2019: $12.2MMusd

Contingent 2019: $1.5MMusd

$1.5MMusd


East Jabung PSC Indonesia

East Jabung PSC

Repsol (Talisman) assets

Oil Pipeline

Gas Pipeline

ANGGUN-1X WELL

• Repsol (Talisman) 51% Operator & POE 49%

• East Jabung PSC possess the best fiscal terms of

any conventional PSC onshore Indonesia with net

contractor take after tax of 35% after cost recovery

for oil and 40% after cost recovery for gas.

• The region within which the PSC is located has

excellent pipeline infrastructure that feeds into

high gas demand markets with current gas pricing

of approximately US$6 to US$8 per mcf.

• AYU-1X, the first well drilled by the joint venture,

encountered a 10m oil column in the Batu Raja

limestone and highly elevated mud gas reading

with oil shows in the Gumai sandstones

confirming hydrocarbon charge into this region.

• Excellent, thick reservoirs were encountered at

both the Gumai sandstone and Batu Raja

limestone target levels in AYU-1X.

• The Anggun-1X exploration well will target the

Gumai sandstones (primary target) in a structural

closure up-dip of the AYU-1X drilling location and

the Batu Raja limestone (secondary target) that is

in a independent closure from the AYU-1X well.

• Drilling is planned to commence in late Q2 2019


Geological Summary

Oil Shows & High Mud

Gas C1-C5

Oil Shows & High Mud

Gas C1-C5 @AYU-1X

Gumai Sands

ANGGUN-1X

10m Oil Column

In Batu Raja Limestone

@AYU-1X


Top Gumai Sandstone Structure Map

Anggun-1X will test near the crest of a large (99 to 180 km2)

structural closure at the top Gumai sandstone level at a

location 4.6 kms north west and 80 meters structurally up dip

of the AYU-1X well that was completed drilling in August

2017 with high mud gas readings (C1 to C5’s) and oil shows

observed through the Gumai sandstones while drilling. AYU-1X

August 2017

Anggun-1X

Q4 2018

Maximum closure

Most Likely closure


• Anggun-1X will test an

independent (separate from

the Ayu-1X) structural closure

at the Batu Raja Limestone

level.

• A 10 meter of oil column was

encountered in the top of the

Batu Raja at Ayu-1X with

excellent porosity and

permeability.

AYU-1X

August 2017

10m oil column

Anggun-1X

Forestry Approved Drilling

Location

Protected Forest

Top Batu Raja Limestone Structure Map

Maximum closure


Anggun-1X Cost Estimate

Estimated Dry Hole Cost: US$7.5 million

Testing (if justified): US$1.5 million

(Net to POE’S 49% WI) Anggun-1X Well Pad Feb 09/19


Anggun-1X Road & Well Pad

Construction

Aerial view of the access road @

kilometer 1.9 Feb 09/19 Access road soil fill @ kilometer 2.4

Access road course pavement Jan 25/19 Access road Geotextile @ km 2.32


East Jabung – Anggun Summary

• Based on the Operator’s AFE cost estimate, POE’s

net cost of the Anggun-1X well is estimated at

US$7.5 million (dry hole) and US$1.5 million for

testing if justified by results.

• The Anggun-1X access road will be permanent,

unlike Ayu-1x which used temporary rig mats.

• Road and pad construction will take place mainly

during the dry season, decreasing construction time.

• The structural complex being targeted by the

Anggun-1X well was estimated by Gaffney Cline in

2015 to hold a Pmean potential of 122.9MMboe

(recoverable) net to POE’s interest within the Batu

Raja, Gumai and ABF formations. In the GCA report

the majority of resources were attributed to the

combined “Intra ABF” and “Gumai” reservoirs.

Subsequent AYU-1X drilling information indicated

the GCA “Intra ABF” to in fact be the Top Gumai and

the GCA “Gumai” to in fact be the intra Gumai.

• East Jabung PSC possess the best fiscal terms of

any conventional PSC in Indonesia with after tax net

contractor take of 35% after cost recovery for oil and

40% after cost recovery for gas. The region within

which the PSC is located has excellent pipeline

infrastructure that feeds into high gas demand

markets with gas pricing of between US$6 to US$8

per mcf.

• An NI51-101 compliant Prospective Resources

Report was completed for Pan Orient by

Gaffney Cline and Associates as at June 30,

2015. See Page 6 of Pan Orient’s December

31, 2015 MD&A.

• The report was completed prior to the drilling

of the AYU-1X and ELOK-1X exploration wells.


ONSHORE THAILAND

CONCESSION L53


Concession L53/48

• Pan Orient 50% interest with one local Thai partner

holding the remaining interest.

• Per barrel costs ($CAD) during the third quarter of 2018

were:

• Transportation expenses of $1.83

• Operating expenses of $15.37

• General and administrative expenses of $10.28

with substantial per barrel reduction expected in

2019 due to DD oil discovery

• A 5% royalty to the Government of Thailand

• December 31, 2018 Reserves (net POE)

2P: 1.3655 MMbbls (150% increase)

1P: 0.4505 MMbbls (65% increase),

2P NPV(10) after tax: Cdn$39.5 million (182% increase)

• 2018 Thailand oil sales averaged 92% of Brent price

• 2019 cash flow will be used to fund an expanded Thailand

exploration drilling program & a portion of the drilling of

Anggun-1X exploration well in Indonesia

100% (POE 50% WI)

Thailand Oil sales prices (% of Brent)


Fau

lt

AA OWC

AA (2P)

BB/CC (1P+2P)

DD/EE (1P+2P)

BB/CC OWC

DD/EE OWC

DD-2 DD-1

DD Field Summary

ZZ Sand

No Reserves

Test 1

489 BOPD

Test 2

756 BOPD

Test 1

645 BOPD

Test 2

409 BOPD

Major Fault


DD Field Drilling & Reserves

2P Cut Off

3P Limit

• 2 well appraisal drilling program commenced Feb11-2019

• DD4 well currently drilling ahead targeting the 3P fault compartment immediately

north of the 1P/2P main fault compartment targeting all 3 sands

• DD3 well will be targeting the thick BB/CC sand encountered at DD2 and the AA

sand encountered at DD1 in addition to the DD/EE

BB/CC Sand Depth Structure

1P

M BBL

2P

M BBL

3P

M BBL

AA - 257 586

BB/CC 271 988 2,650

DD/EE 144 544 1,323

Total 399 1,719 4,386

PAN ORIENT ENERGY (SIAM) LTD. (100% WORKING INTEREST IN CONCESSION

L53/48) (PAN ORIENT HAS 50% INTEREST IN PAN ORIENT (SIAM) LTD.)

SUMMARY OF THAILAND CRUDE OIL RESERVES AS OF DEC31-2018, BY ZONE

AS PROVIDED BY SPROULE - COMPANY GROSS (THOUSANDS OF BARRELS)

DD4

DD3

Possible (3P) reserves are those additional reserves that are less certain to be

recovered than probable reserves. There is a 10% probability that the quantities actually

recovered will equal or exceed the sum of proved plus probable plus possible reserves.


Prospect Closure (km2)

Reserves

YE 2018

AA 0.69 NA

AA North 0.27 NA

AA East 0.20 NA AA South 0.15 NA

BB (DD Ridge) 0.34 NA

BB West 0.22 NA

TOTAL 1.87 NA

DD Possible 0.27 2.770 DD Proven+Probable 0.64 1.804

AA

AA

North

BB

BB

West

AA

East

AA

South

1 KM

• The DD field 3P area will be tested by DD4 well

which is currently drilling

• BB & AA locations will require certain

Government of Thailand approvals and be ready

to drill in 6-9 months

AA

BB

DD Area Prospects

DD Pad

2019 Proposed Locations

DD4

Currently Drilling


AA

AA

North

BB

BB

West

AA

East

AA

South

1 KM

AA

BB

DD Area Prospects

Z ZZ

Z ZZ

Near Top

AA Sand

Near Top

CC Sand AA

Prospect

AA

South

Prospect

DD

Field

DD4

Currently Drilling


L53 Exploration

Prospects

Mature Source

Rocks

5 km.

L53G PA

PTTE

P

L53/48

West A1-A4

West A5-A7

Prospect

KS Basin

Closure

(km2)

WEST_A1-A4 2.01 WEST_A5 0.78 WEST_A6 1.20 WEST_A6A 0.50 WEST_A7 4.20 TOTAL 8.69

Prospect

Suphan Buri Basin

Closure

(km2)

AA 0.69 AA North 0.27

AA East 0.20

AA South 0.15

BB (DD Ridge) 0.34

BB West 0.22

TOTAL 1.87

DD Location

2019 Exploration Well

Future Exploration Well

• 3 to 4 well exploration program planned for late Q3/Q4 2019

• Expect government approval for the DD area locations in September 2019

• West A1-A4 exploration location approvals completed

• West A7 (2020 drilling) exploration well pad construction is completed

• Exploration Reserve Areas A&B will expire in January 2021, after which only the

production areas (A,B,D,G & DD) plus any new production areas will be retained


Sawn Lake, Alberta, Canada


Andora’s Sawn Lake SAGD Project

• Pan Orient Energy Corp. owns 71.8% of Andora

• Andora is focused on developing the bitumen resources at Sawn Lake using SAGD development.

• Currently interests in ~80 sections of oil sand leases

• 141.4 million barrels of risked “Best Estimate” contingent bitumen resources attributed to Pan Orient’s 71.8% ownership of Andora (Andora has 196.9 million barrels). Andora operates 99%.

• Demonstration project produced bitumen September 2014 to February 2016 and indicated that Sawn Lake is a top quartile SAGD asset.

• Intended development with Andora’s patented “Produced Water Boiler” (PWB) which enables use of “battery scale SAGD” to significantly reduce financial, reservoir and operating risk.

Sawn Lake

(Company Gross)

(15% development risk)

High

Estimate

Best

Estimate

Low

Estimate

Millions of barrels of

Bitumen - SAGD 166.1 141.4 128

Sawn Lake Risked Contingent Bitumen Resources at June 30, 2016 (net to Pan Orient’s 71.8%) Evaluated by Sproule Unconventional Limited. See NI51-101 Filing on SEDAR on April 28, 2017.

Red

Earth

T79

R1

W5

R24 T98

Husky

Baytex

5th

Meridia

n

Shell

Penn

West

Sawn Lake

Koch

Peace River Oil Sands Area


Andora’s Oil Sands Leases

Sawn Lake North

• 10% of 44 sections (non-operated) (note:

includes one four section lease whose primary

term ended in July 2018 and it is uncertain which

sections the operator is able to continue

indefinitely – no impact on contingent resources

assigned)

• 100% of 9 sections (Andora operated)

• 1 MMbbls risked “Best Estimate” contingent

resources net to Andora

Sawn Lake Central

• 50% of 11 sections (Andora is Operator)


resources net to Andora

• SAGD Demonstration Project facility & wellpair at

7-30-91-12W5

Sawn Lake South

• 100% of 16 sections (Andora is Operator)


resources net to Andora Andora holds varying interests in estimated 80 sections

(although four sections under review) Dec31-2018 with 197

MMbbls contingent bitumen resources assigned. Pan

Orient has a 71.8% ownership in Andora.


Progress at Sawn Lake

Demonstration Project 2014 - 2016

• Bitumen production in January and February 2016 averaged 615 barrels BOPD with an average

instantaneous steam-oil ratio (“ISOR”) of 2.1 from the one SAGD wellpair.

• Established viability of the SAGD process in the Bluesky formation at Sawn Lake.

Potential Expansion to 3200 BOPD

• Andora finalized detailed engineering for its patented PWB in 2017.

• Regulatory approval received Dec5-2017 for potential commercial expansion to 3200 BOPD (in

which Andora has a 50% working interest and is the operator) using Andora’s PWB.

• Potential expansion has estimated cost of approximately $50 - $60 million (on a 100% working

interest basis) and bitumen production would commence about 24 months after an investment

decision by Andora and its partners.

• Stable crude oil prices, and specifically higher Western Canada Select reference prices, will have a

significant impact on any decision regarding the timing and extent of future development.

• Expansion is dependent on completion of detailed engineering and a higher commodity price

environment to support project economics and financing.

Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake

demonstration project has not yet proven that it is commercially viable.


Sawn Lake Quality

Sawn Lake

Tier 1 Projects


Andora Summary

Andora Value Components

1. Sawn Lake Interests & Operations - “Tier 1” SAGD asset with significant potential value at

WCS US$40 – US$50 heavy oil prices

• 197 million barrels of Bluesky Risked “Best Estimate” Contingent Resources

• 50% ownership of $34 million SAGD facilities & SAGD wellpair

• Control of Sawn Lake development as Operator per the JOA

2. Andora proprietary technology for “Produced Water Boiler” to for intended use at Sawn Lake

and utilized at other projects

3. SAGD experience for drilling, installation of facilities & operations

4. Corporate entity with Dec31-2018 approximately $56 million of tax pools/losses


Contacts

Pan Orient Energy Corp

Suite 1505, 505 3rd St SW

Calgary, Canada

Telephone: +1 403 294-1770

Fax: +1 403 294-1780

www.panorient.ca

february 2019...pan orient disclaims any obligation or undertaking to disseminate any updates or...

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